Midas, NOT!

Did you miss the boat on gold? I did. My wife and I agreed to shift a large part of our savings into gold back in the summer of 2004. I had read about the faults of our fiat currency system for years and it was time to do something about it. I explained everything to her and she agreed that it was the right thing to do. We even shook hands on it. Gold had dropped back below $400 per ounce and it seemed like the perfect time to buy. BUT guess what? I never actually did it! I bought zero gold. Crap!

Do you think I was kicking myself when I saw gold go over $1000 per ounce? OK truth be told I’m still kicking myself. So did I redeem myself when the price of gold fell to $750 at the end of 2008? No I missed that one too. What the hell is wrong with me?

When gold dropped from over $1200/oz to $1050/oz in February of 2010 I finally got in. I had to swallow my pride about “missing the boat” and I’m glad I did. I have made over 50% on my investment since then. But more than the theoretical gain, I feel better knowing that I have a hedge against the collapse of the fiat monetary system. Now when I read “bad news” about bailouts, and bond referendums I don’t get depressed. I know I have at least one investment that will protect my wealth.

Well for those of you who “missed the boat” we believe that now is a great time to get into the game. After researching the faults of paper currencies for over a decade I see that governments around the world have done nothing to give more confidence in their system. They have only made things worse. Currently gold has dropped from $1900/oz to around $1700/oz. It has hovered here for months. If you missed the boat before, this is your chance!

In his recent article entitled “A Gold Mulligan” John Hathaway lays out the case for gold and gold stocks extremely elegantly. He has plenty of technical data but the article remains very readable. He asks the question “What is the value in real terms of the $200 trillion of wealth denominated in currency if nobody wants the paper?” and he believes, as do we, that we are “in the midst of a tectonic shift in global monetary arrangements.”

In his own words…

What follows is a table thumping, categorical, endorsement of gold and precious metal mining stocks. It is addressed not only to impatient and possibly dispirited holders of precious metals mining equities, but also to the bystanders and spectators of the past twelve years. Gold mining equities represent the closest thing to an investment Mulligan as we have seen—a rational way to participate in what appears to be the end game for paper currencies on an attractive risk adjusted basis. Gold bullion is popular. Gold stocks are not. Gold bullion has become volatile. Gold stocks remain somnolent.

If you have not gotten on board please do so now. You can buy gold coins for under $200. You can invest in gold stocks for very little money. There are many ways to get involved and all of them are better than sitting on the sideline.

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